How do you prepare yourself for retirement?

[Cristen Wyght]

Retirement is one of the most important life events many of us will ever experience, and let’s admit that all of us would like to retire comfortably. From a personal and financial perspective, realizing a comfortable retirement is an extensive process that takes sensible planning and years of persistence. How do you prepare yourself for retirement?

[Fishindude77]

The mental part of it isn't all that tough. Most retired folks are ready to get away from full time work when they finally pull the trigger.

The money part is tougher.
If I was advising a 20 something kid, a few things I would suggest are:
a. Save at least 15% of your gross income in a 401K or similar to give it time to work.
b. Don't get crazy borrowing for cars.
c. Never borrow for toys or fun and live a cash & carry lifestyle for the most part.
d. Keep your mortgage reasonable, have at least 20% down payment, and go with a 15 year fixed loan.

[Gailete]

I think the mental part is tough (although maybe not as tough as retiring without adequate resources). At one point in my career I creamed my back bad and was put on worker's comp. I remember I was in a daze and didn't have a clue what to do with myself. There are of course many factors involved in all that, but you must have some sort of plan for what you are going to do. Sitting round watching TV can get old real fast especially if you are an A+ personality type. You might want to look into volunteering and start doing that before you actually retire and then just bump your hours of doing it up, have a hobby that will keep you occupied. If your spouse isn't retired, then you want to find out what you can do to take a load off them. If your spouse has been a housewife(husband) for the last 40 years, now is not the time to be making suggestions for how to do things unless you don't care if they shoot you (or would just like to). Yet again you can ask for a division of labor so they also have some time off.

I suspect many of those on this forum are A personality types, always needing to be doing something. I thought because I liked to sit back and read a lot that I was a B personality until I became disabled and was talking to my mother about it. She said I was an A and at that point I started to see it. I always had to have something to do. Reading a book is something to do, but for me to sit, even now, for 5 minutes with nothing to do gives me the heeby jeebies. Folks like that HAVE to have a plan for what they will be doing when they no longer have to get up at 6:30 AM and go to work!

Thankfully I'm slowly transitioning into retirment as such, although my 'To Do' list is about 537 years long!

[colby99]

Get out of any debt…including credit cards. Make sure you have some hobbies. Continue to exercise. If you are a reader, buy a Kindle PaperWhite. I have over a 1,000 on my kindle and most of them are free. Update your computer.

[Kuznec]

Take a rest, pamper yourself on the beaches in some Thailand or the Bahamas. There are many places where it is relatively inexpensive to comfortably spend your pension, lying in a hammock under the palm trees on the beach.

[Gailete]

Take a rest, pamper yourself on the beaches in some Thailand or the Bahamas. There are many places where it is relatively inexpensive to comfortably spend your pension, lying in a hammock under the palm trees on the beach.

I realize that what I am about to say would have many of you sending for the men in white coats after me, but that to me sounds like the boringest retirement possible! After about 10-20 minutes, unless I actually fall asleep, I would be getting up and looking for something to do, like all the things I haven't had time for in the past 60+ years. Read my next 10K worth of books, make some great quilts and if feeling up to it, cooking and baking something delicious! I guess we all have our images of what retirement means to us. To me it simply means no more grubbing around for money to live on. All other systems continue as before. Unless I physically can't handle it any more or on line selling changes so significantly that I can't do it anymore, I want to keep my business going.

But if you are going to lay around in a hammock wherever, then you need to figure out what kind of hammock you want. One like Gilligan's, or one for two of you, etc. Do you have trees to hold it? If not do you have time to plant them and have them grow big enough to hold a hammock in time for retirement. I know they have a metal frame to string hammocks on, but what good is it if you have no trees for shade?

[Cristen Wyght]

Thanks for all the insights. If I may mention, when it comes to future financial wellness especially on the part of retirement, it takes a lot of determination and hardwork. While everybody enjoys the money they are earning, controlling one's self to spend is truly remarkable.. It is a hard job to do.

I for once was skeptical on financial planning. I remember telling a colleague that I am way too young to even start. That changed when I saw a video about financial planning and how to diversify. That was the start.

Anyway, I recommend everyone to have a dialogue with a financial adviser to give a better understanding about retirement planning.

[disneysteve]

recommend everyone to have a dialogue with a financial adviser

Stay away from "financial advisers". Most are just glorified salespeople trained to do little more than push products that generate juicy commissions for themselves.

There are plenty of ways to educate yourself about saving and investing including sites like this one where you can get experienced advice about whatever issues you are dealing with. And it won't cost you a penny.

[clatoden99]

That’s a very broad question. I am going to focus on one aspect which doesn’t get a lot of attention. What am I going to do with my time that makes me happy and fulfilled. Before I retired six years ago, one of my friends gave me his key to a content retirement — make sure you do one thing every day that gives you a sense of accomplishment. While I find that guidance helpful, I have found that my happiness and sense of fulfillment require that I regularly reevaluate how I spend my days. That occurs both because my needs and abilities change and circumstances around me change. For a while, caring for my grandchild and my mother gave me lot of happiness and fulfillment. When that phase ended, I became more involved in volunteer work. I find myself constantly looking for more ways to get the social interactions I want and the sense of contribution I need. The trick for me is to not let the dynamism of retirement add to my stress (or that of those around me). I try to be as patient as possible at finding what I need, relying on my network and the internet for “suggestions”.

So, while it is helpful and important to think about how you will spend your time after retirement, it is also important to be patient about finding the things that make you happy and fulfilled and to recognize that today’s answer might not last forever. Do your best to not let this add to your stress.

[TexasHusker]

Prepare for retirement:

- Fit yourself for Depends in advance.
- get a change purse
- Buy a Buick LeSabre 4-door preferably white or silver
- subscribe to readers digest
- get a good electric heater for your bedroom and living room
- get a case of geritol
- prune juice just in case
- invest in a good loofa
- AARP full membership

That will get you started.

[Gailete]

Prepare for retirement:

- Fit yourself for Depends in advance.
- get a change purse
- Buy a Buick LeSabre 4-door preferably white or silver
- subscribe to readers digest
- get a good electric heater for your bedroom and living room
- get a case of geritol
- prune juice just in case
- invest in a good loofa
- AARP full membership

That will get you started.

Not sure if this was said as a joke or not, but you are right on with a few of those items. I've mentioned before thatI do Amazon Vine Reviews and for awhile thay had all sort of Depends like items up for us to try and use. I took advantage of everyone that might fit me. Seemed prudent since I already have bad health problems. I have 4 packages of disposable underwear as well as packages of pads put aside. I know they fit as I tried them on and used them to be sure. No guesswork for the family if I suddenly have need of these.

A week or so ago I got an entire case (48 bottles) of cleaning lotion for giving a bed bath without benefit of a shower/tub bath. I'm already at the point I have trouble doing showers on my own so handy to have.

I really recommend the AARP which I think you can subscribe to when you turn 50. They had a very good article in their bulletin last week on Medicare.

I prefer an electric blanket in the winter as it keeps my jionts from aching too much during the night. I can't sleep if the room is too warm, and I can't sleep if my joints are cold and stiff. I think I have gone through three of them so far as the electric component wears out on newer ones. Usually by their thrid year even on high they barely hit lukewarm.

I might not get Reader's Digest, but I do have several magazines that I get and I have a huge stack of boks to read whenever my retirement allows me the time.

Just saying some of those tongue in cheek points are really good points. May I add

-Have a source of quality sweatshirt jackets that open in the front. They wash well and are much easier to put on and take off that something that goes over the head. I still remember a Dear Abbey/Ann Landers column where someone wrote back that her suggestion for warm up clothes for nursing home patients was basically a vile suggestions and then she had to point out that these garments are easily washable (unlike a cashmere sweater), and warm and as I mentioned easy to put on. and take off.


Better to be prepared in case of a less than ideal retirement than thinking you will go on an extended world tour and then find yourself in a nursing home after falling and breaking your hip which refuses to heal.

[Gailete]

That’s a very broad question. I am going to focus on one aspect which doesn’t get a lot of attention. What am I going to do with my time that makes me happy and fulfilled. Before I retired six years ago, one of my friends gave me his key to a content retirement — make sure you do one thing every day that gives you a sense of accomplishment. While I find that guidance helpful, I have found that my happiness and sense of fulfillment require that I regularly reevaluate how I spend my days. That occurs both because my needs and abilities change and circumstances around me change. For a while, caring for my grandchild and my mother gave me lot of happiness and fulfillment. When that phase ended, I became more involved in volunteer work. I find myself constantly looking for more ways to get the social interactions I want and the sense of contribution I need. The trick for me is to not let the dynamism of retirement add to my stress (or that of those around me). I try to be as patient as possible at finding what I need, relying on my network and the internet for “suggestions”.

So, while it is helpful and important to think about how you will spend your time after retirement, it is also important to be patient about finding the things that make you happy and fulfilled and to recognize that today’s answer might not last forever. Do your best to not let this add to your stress.

You are so right. Trying to find ways that you can help others can give you more satisfaction than spending your days as just about you. I know when I get a chance to help someone else, I feel more blessed than they do for receiving it.

[frugal saver]

Throwing in how I prepared for retirement:

1. Multiple streams of income--I didn't want to depend on one source in case something happened to it. I paid into a pension for years but everytime there were budget issues the "solution" was always to "take away the free pension." Politics change, stock market changes--have a solid source of enough income from all the sources. Pension, 401K, IRA's, CDs, rental income, whatever works for you.
2. Budget the heck out of everything. What will it cost you a month after you stop working? Be realistic--if you think you're going to go stir-crazy and end up taking trips, budget for them. Plan ahead for changes--health, hobbies, changing interests.
3. Take a "pre-retirement." The year before I retired, I took 5 weeks vacation (I'd never taken more than a week in 40 years.) The first week I couldn't wait to get back to work, the second week I was stir-crazy. By the time I was a few days from returning, I'd formed new patterns and hobbies and felt like retirement would work fine. Hurt to work for another year, but I'm glad I did it.

I remember someone saying once to "close your eyes and describe what your retirement day looks like." Mine always involved working in my garden, reading books, so I knew I didn't need some multi-million dollar plan in place and I have a very comfortable retirement that others probably see as fairly frugal. Be honest with yourself about what you really want, then start working on how to finance it.

[msomnipotent]

[QUOTE=
I really recommend the AARP which I think you can subscribe to when you turn 50. They had a very good article in their bulletin last week on Medicare.
[/QUOTE]

I just signed my husband up for AARP the other day. I was surprised how many discounts are available. Of course, he just went to Burger King yesterday and forgot about the discount.

[Gailete]

I got a subscription to Money magazine for cheap for the last few years. Once I am done with it I pass it on to my younger son where he eventually passes it on as well. So many of the articles in it focus on couples making $100K+, so a bit hard to be sympathetic or even want to be able to follow their advice. I do glean some good information from it though as well as hearing about some important tax laws.

I only bring this up because in the magazine this month the focus is on retirement and Suze Orman has a large article on prepping yourself for retirement. One of the things she said is that 70 is the new 65 when it comes to retirement age. She encourages everyone, if possible, to work until they are 70. She also encourages all to have their homes paid off prior to retirement and many other good ideas written at a level that most people can understand, much different than the usual writing geared towards higher earners with financial knowhow. I hate reading articles that start throwing out alphabet soup without once defining what all those 3-4 letters mean!

Many libraries have copies of the magazine that you can read it if you like. It is worth a few minutes of your time and a way for you to help others understand that what they think is the light at the end of the tunnel, is in reality the train with a big headlight coming straight at them!